Safeway, the parent company of Vons and Pavilions, confirmed Wednesday that it's in talks to sell the company, which has been the subject of persistent speculation.

"Safeway Inc., (NYSE: SWY) today announced it is in discussions concerning a possible transaction involving the sale of the company," the grocer said in announcing fourth-quarter earnings. The company was quick to say that a sale might not happen and declined to comment further.

The Pleasanton grocer is taking other measures to send cash back to shareholders, including distributing the remaining 37.8 million shares of fast-growing gift-card company BlackHawk Network Holdings (NASDAQ: HAWK). The shares represent a 72 percent stake in BlackHawk, which was created by Safeway.

Safeway is also seeking to cash out of its 49 percent stake in Mexican retailer Casa Ley.

The moves follow the sale of Safeway's Canadian operations and its Chicago unit, Dominick's.

"We are pleased with the progress we made in 2013," said Robert Edwards, president and CEO of Safeway. "Strategies to grow sales and improve operating profit dollars have begun to produce results.

"In 2013, we generated our best volume growth since 2006, and we had our best identical-store sales growth in the last five years," Edwards said. "At the same time, we continue to pursue strategies to enhance momentum and increase shareholder value."